A company is currently using its two inputs L and K, where MPL - 3.2K04L 0.2 and MPK - 1.6K -0.610.8 The firm pays a wage (W) of $80 per L and pays a rental rate of capital (R) of $40 per K. unit(s) of K for every The optimal (cost minimizing) combination of labor and capital is to employ unit of L (K should be times L). Answer as a whole number.

A company is currently using its two inputs L and K, where MPL - 3.2K04L 0.2 and MPK - 1.6K -0.610.8 The firm pays a wage (W) of $80 per L and pays a rental rate of capital (R) of $40 per K. unit(s) of K for every The optimal (cost minimizing) combination of labor and capital is to employ unit of L (K should be times L). Answer as a whole number.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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